Africa’s food system presents various challenges, such as food security, water scarcity, and the need for resilient crops. For ingredients supplier ofi, the cooperative model is the ideal solution to tackle these issues. Flora Coffi Sika, ofi’s sustainability lead in Africa, explains more about it.
One significant problem with Africa’s food system is the inefficient setup of food supply chains, which fails to maximize its potential. African food factories often run below 50% of their installed capacity due to a scarcity of quality raw materials and insufficient capital. Consequently, African consumers spend approximately 60% of their income on food, while European or US consumers only spend 10%.
Cooperatives provide a resilient and sustainable sourcing model for ingredients specialists like ofi, says Sika. They offer a means to extend support to farmers and communities that produce the chocolate, coffee, and nuts we all enjoy. ofi has been building relationships with African communities for nearly two decades and currently sources cocoa, coffee, and cashew from over 350 partner cooperatives, benefiting over 170,000 smallholder farmers.
Sika emphasizes that cooperatives serve as a communication channel and enable collaboration between members, giving farmers a collective voice. Through cooperatives, ofi can provide more ambitious support to farmers, including training on proper farming practices, access to information and markets, and pre-financing options. By professionalizing cooperatives and establishing local buying structures where necessary, ofi can unlock the value of cooperative sourcing.
Promoting equality and innovation in rural communities is another advantage of the cooperative model. Cooperatives act as a listening mechanism, guiding investments in literacy programs, finance training, and health and education infrastructure. They also help develop action plans for the inclusion of women and youth and offer training on good labor practices. For example, co-ops have been instrumental in implementing child labor monitoring, with one partner cooperative in Côte d’Ivoire using its premiums to build a kindergarten for working parents.
Cooperatives also contribute to supply chain transparency and responsible sourcing. They conduct internal monitoring and compliance with social and environmental standards. Traceability is facilitated by the cooperative structure, as co-op managers capture information on farmers and farms through ofi’s smallholder technology platform, the Olam Farmer Information System. This traceability ensures a sustainable story behind the coffee, chocolate, and snack bars that ofi procures from co-ops.
Overall, ofi’s experience working with farmer cooperatives has enabled them to improve third-party supply chains and ensure the sustainability of their products. The cooperative model proves to be an effective strategy in addressing the challenges faced by Africa’s food system.
